Caroline Ellison to surrender nearly all remaining assets to FTX Bankruptcy 4 hours ago

Bankrupt crypto exchange FTX announced that Caroline Ellison, former CEO of Alameda Research, has agreed to transfer nearly all of her remaining assets to the company as part of a settlement.In an Oct. 7 court filing, FTX’s bankruptcy estate disclosed that Ellison will hand over most of what she still owns, following her forfeitures to the US government and coverage of her legal expenses.In addition, Ellison also agreed to cooperate with the estate’s efforts to wind down the firm, assisting in generating more value for creditors.This settlement follows Judge John Dorsey’s recent approval of FTX’s bankruptcy plan. Under this plan, the failed firm’s former customers could recover between 118% and 142% of their claim values, with speculations that customers with claims under $50,000 could start receiving their payments before the end of this year.While the court filing did not specify the exact value of the assets Ellison will forfeit, FTX stated that she would be left with nothing “other than certain physical personal property.”FTX argued that this move is beneficial because they have technically secured “substantially all that could be recovered” through the settlement. Further, her cooperation with the bankruptcy proceedings is expected to aid the estate’s value recovery efforts.So, pursuing litigation would only result in higher costs and delays. The firm stated:“The proposed settlement would therefore generate more value to Plaintiffs’ estates than if Plaintiffs were to continue litigating the Adversary Proceeding against Ellison.”However, the agreement still requires court approval, with a hearing scheduled for Nov. 20.FTX filed a lawsuit against Ellison in July 2023, accusing her of breaching fiduciary duties, misusing company funds, and making fraudulent transfers. The lawsuit sought the recovery of approximately $22.5 million from 2022 bonus payments and an additional $6.3 million from bonuses received in 2021.Last month, Ellison was sentenced to two years in prison for her involvement in misappropriating customer funds and was a central witness in the case against the convicted founder of the defunct exchange, Sam Bankman-Fried.Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.Also known as “Akiba,” Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change. Follow us on X for instant crypto news and insights updates.LEO token jumps 14% as road to new filing clears pathway to restitution.Realized price suggests Bitcoin’s cyclical potential amid subdued market sentiment.According to the lender, Solana could see exponential growth under a Trump administration due to favorable regulatory environments.Over 500,000 Alchemy Pay users will be able to use the Samsung Pay gateway for online and in-store crypto payments in 24 different countries.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.